OVERVIEW OF MONETARY POLICY
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Wouldn't it be great if there were more money to go around? Well, maybe not. Money after all, is just paper unless it is backed by assets. If we simply printed more money, it could lead to hyperinflation, making money less valuable. On the other hand, without enough money in circulation, individuals and companies would not be able to buy and sell. To keep our economy in balance, we need to set an effective monetary policy. In this tutorial, you will learn about the following topics related to monetary policy and the Federal Reserve:

• What Is Monetary Policy?
• Who Makes Monetary Policy?
• How Monetary Policy Affects the Economy
• Effect of Monetary Policy on Fixed-Income Securities
• Effect of Monetary Policy on Stocks
• SUMMARY--MONETARY POLICY REGULATES THE ECONOMY

Let's begin this tutorial by explaining what we mean by monetary policy.